EDITORIAL: Auditor General asking the right questions

Nova Scotia auditor general Michael Pickup added a new section to his October report full of questions Nova Scotians should be asking. (ANDREW VAUGHAN / CP)

Auditing, journalism and engaged citizenship are all about asking good questions. So there’s a lot to like about a new feature Nova Scotia Auditor General Michael Pickup has added to his October report on the province’s operations — an exercise in accountability he calls “10 questions Nova Scotians may want to ask.”

The three chapters in Wednesday’s report each include one of these checklists. One deals with weaknesses in financial controls and executive expenses reporting — as demonstrated by inappropriate CEO claims at the IWK hospital — and with a lack of anti-fraud measures in government. There are cogent questions about growing debt and tax burdens, expense trends and financial shocks. On our $17-billion public sector pension plans, there are good questions about very different states of health and risk.

We can’t include all 30 questions , but here’s a sampling of commonsense things Mr. Pickup suggests you ask.

On financial controls, why does the Nova Scotia Health Authority have significant weaknesses over control of its resources after two years? Why do the IWK and Housing Nova Scotia have significant control weaknesses? Why do some organizations not disclose travel and hospitality expenses of all executive members?

Why haven’t departments spending billions of dollars, such as Education and Municipal Affairs, not fully assessed fraud risk and could there be wasteful spending? Why is there no government fraud tip hotline for employees and all Nova Scotians to call if they suspect waste and abuse of public monies?

On the finances, what did we get for a $1.6-billion debt increase in five years, how does this affect future spending and how do we pay if interest rates rise by two to three per cent? Why have personal income taxes per tax filer increased by 25 per cent in five years?

What will happen to health costs if the number of seniors doubles in 15 years? How did education costs rise as student numbers fell? What’s the long-term outlook for federal transfers, what are our biggest financial risks, how prepared is Nova Scotia for a recession or unexpected events?

The audit finds the health-care workers’ pension plan is in “solid shape,” the public service plan is in “decent shape” and the teachers’ plan is “concerning,” with a $1.4-billion deficit. The unfunded MLA plan is simply covered by government.

Good questions for the public, the AG suggests, include who is accountable for performance of the plans, who audits the performance, why are they in such different shape, how are they invested and are they prepared if the markets crash? What’s the government financial exposure, what are the members’ risks of higher contributions or decreased benefits? What is the plan to address the seriousness of the Teachers’ Pension Plan status?

Why does the province contribute differently for the plans (dollar for dollar, plus 1.4 per cent for health-care workers; dollar for dollar for the public service and teachers; $5 to $1 for MLAs)?

When the legislature public accounts committee meets, it should get straightforward answers to these questions. They are, after all, the basic test of whether we can count on vital public services to be affordable and to be there.